If grid lock, anger, douch baggery, and killing automated cars is you goal, then sure.
Otherwise, we will just have the self righteous assholes going 15 MPH in a 25 MPH zone becasue they are too precious to use the bike lane.

And the car will have the simple common sense to wait ten or fifteen seconds until it's safe to go around the cyclist, who will inevitably catch up at the next traffic light anyway. This behavior seems to elude humans.

I know what they use. I use the same sensors. Rain is a problem. Dust is a problem. Snow is a HUGE problem. Of the sensors on the car, the Velodyne HDL-64E on top is by far the most important, and provides the most critical data used for localization and detecting dynamic objects. With rain in particular laser beams can get refracted or reflected by the raindrops, which incredibly fuck up your distance measurements. The typical solution is to do a lot of filtering (i.e. take the median of two measurements) but this cuts down your effective frame rate, which already isn't that high to begin with.

Snow pretty much guarantees that "manual operation mode" is going to be a primary interface in autonomous cars for a long time to come, as we wait for not only sensors to get up to speed, but also machine learning in general.